A SEVERE cashflow problem is said to be at the heart of a decision yesterday to temporarily close the regional news agency, Caribbean Media Corporation (CMC).
All wire, radio and television services offered by the CMC have been suspended, pending a restructuring exercise, Gary Allen, the CMC's Chief Operating Officer told The Gleaner from Barbados yesterday. He said the closure could be for as long as three months.
The CMC has for the past 17 months been the region's first and only multi-media (print, radio, television and Internet) entity, having been formed to undertake the business operations of CANA and CBU.
"We have been aware for sometime that the CMC, the CBU and CANA have all been in very severe financial difficulty," said Hopeton Dunn, lecturer at the Caribbean Institute of Media and Communication (CARIMAC), at the University of the West Indies, Mona.
In describing the situation as unfortunate, Dr. Dunn noted that the three entities combined represented a major effort on the part of the Caribbean region to generate its own news, beginning with CANA in 1976. "I think it is sad news for the region and the media fraternity as a whole, but the hope is that they can regroup in the interim and come back in a stronger and more useful way," Dr. Dunn said.
Fifty-five members of staff, including those employed to CANA Radio, CANA Wire and CBU Television, were sent home yesterday. Despite being made aware of the CMC's financial position during previous meetings, most were said to have been surprised by yesterday's mid-afternoon announcement.
But, Mr. Allen said the staff was kept abreast of the company's financial position, which was compounded by the September 11 terrorists attacks on the United States last year. This, he said, resulted in a significant decline in advertising and business activity in general.
He said several options were being looked at: refinancing with some Government assistance or shareholders input; or bank loans. The alternative was that the Corporation would have to close to restructure.
Radio Jamaica's chairman, Lester Spaulding, is the chairman of the CMC.
In a statement issued late yesterday, the CMC said a small team of four was being retained to work on the "speedy restructuring of the organisation". The team will also work to ensure that committed media projects will not be jeopardised in the period of closure.
The CMC Board said the temporary closure decision was not taken lightly and has come after months of efforts to re-finance, re-structure and recapitalise the organisation while continuing regular operations.
It expressed regret at the suspension of the region's only source of indigenous news and programming but said it looked forward to when it will return to stronger and expanded operations.
